Modern commercial sectors create backward linkages that encourage quality and cost effective production, while financial institutions create forward linkages that help to impose efficient governance structures throughout the economy. The latter are also crucial for FDI in other branches of the...

This paper reviews the economic literature which deals with the tautness of plans and with its relevance to macroeconomic pressures in Soviet-type economies. It opens with a discussion of Kornai 's shortage economy, a systemic approach to pressure, which is an alternative to the plan-related...

Popper, in his Open Society and The Poverty of Historicism argued that planned institutional social changes may be successful, provided their architects know the structure of the relevant institutions and their interrelations and plan and execute their changes accordingly. The changes discussed...